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VW's ID.1, FIAT boss Olivier Francois interview & a car salesperson!
345 Plays1 month ago
Nobby has been travelling again, this time to Dusseldorf to catch the new Volkswagen ID.1.
FIAT CEO Olivier Francois chats to us at the launch of FIAT Grande Panda.
Dubliner Lee Fitzpatrick who is sales manager at Spirit Skoda in Sandyford gives an insight into the world of car sales!
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Transcript
Introduction to Drivers Republic Podcast
00:00:00
Speaker
Welcome to the Drivers Republic podcast brought to you in association with Dundeele Motors, Ireland's favourite car buying website with the widest selection of cars from certified, trusted dealerships. Most Irish drivers find their next car on Dundeele.
00:00:14
Speaker
And this is the Drivers Republic podcast hosted by Paddy Common, who's down in Cork, and myself, who's up in Dublin.
Car Buying Tips Teaser
00:00:22
Speaker
This is Nobby or Mark Noble or whatever you want to call me.
00:00:24
Speaker
I'm sure this has been worse over the years. so are nationwide... nationwide worldwide international wide the whole shooting gallery and we've lost on today's podcast we will be hearing from a salesperson in a major car brand company later on so if you want some tips on buying a car and when's the best time of the year even to buy a car we'll be hearing all of that Stick around
Interview with Fiat CEO Olivier Francois
00:00:49
Speaker
for that. And Mark as well has been speaking to one of the big guns as well, Fiat CEO Olivier Francois.
00:00:56
Speaker
Interesting guy. Very interesting guy. Very charismatic. ah Very off the cuff. A lot of these brands, as you well know, Paddy, are very guarded in what they say to the media. And to have a guy at the top table in Fiat, kind of just shooting from the hip. thats That was the impression that I got at least.
00:01:15
Speaker
ah Which means there's a very nervous PR handler somewhere. Yeah, like he really was like you'll you'll hear he he gets into a story today on the podcast and he says, ah I don't know if this is a secret, but and one of one of his guys says, well, I don't know what you're about to say here next. And he goes, that's fine, it's fine.
00:01:34
Speaker
ah And he talks about Tavares, who's the recently departed boss of Stellantis, who was his boss, who this week we heard his its pay deal was an incredible, but was it, 110 million euro?
00:01:46
Speaker
million euro Yeah, like most of which was a bonus. Come on! That's quite a lot. So, that will be later on the podcast. And we'll tell you what we've both been up to and what been driving this week, as well as all the usual car news. We just want to start today's podcast, though, with a shout-out for good pal of ours.
00:02:06
Speaker
Probably the OG when it comes to video on YouTube in Ireland. ah Mr. Bob Clavin. Yeah, absolutely. It's been, a Bob's been, is going through a pretty tough journey at the moment with ah a cancer diagnosis and he's battling really hard on that. And we really just want to,
00:02:26
Speaker
give Bob our our best wishes because as you say, he is the the original Irish YouTuber, a huge following still and has a huge audience who are very supportive of him still, but ah we just wanted it to make sure he's doing okay and I know he's fighting the good fight.
00:02:41
Speaker
and Send our thoughts to him. Yeah, I last saw Bob a few weeks ago, gave him a lift from one car place to another and He said, I'm going to get a T-shirt that says I'm fine on it because people were just naturally asking him, how are you, Bob? how are you getting on?
00:02:58
Speaker
So, yeah, don't ask him how he is. If you see him, just give him a nod and a wink. you'd be You'll probably see him at a charger somewhere. And ah what's that place? Junction 14. He loves Junction 14.
00:03:10
Speaker
Yeah. so Yeah. Yeah. We're all thinking of you, Bob. and Exactly. We're all thinking of you, Bob.
Mark's VW Car Launch Experience
00:03:16
Speaker
So, so yeah busy week, busy week again. yeah you've been on your travels again. and and the first one, though, is one which is very close to my heart because I have outside a Volkswagen E-Up, which I love. I still love driving that car. I know people laugh at me sometimes for being so enthusiastic about tiny little car. I am quite tall. like You have to fold yourself into it.
00:03:41
Speaker
I do, but ah what what a great little car. the but the the I presume the seat is all the way back when you're in it. Do you have to change the top part of the seat as well? that no the back the bank No, once i'm I'm back the whole way, you wouldn't want to be sitting behind me now for sure. But ah yeah but no, um I remember seeing um um saying you and and and seeing Neil Briscoe review that car at the time and I...
00:04:05
Speaker
i am I went into the dealership and says, yeah, no, I just, I had to have one. And I bought it in, I bought in September 23. And then of course they dropped the price by 10 grand four weeks later. But um enough about that. But its spiritual successor has been unveiled this week. And Mark, you've been over to see it.
00:04:23
Speaker
So never been to Dusseldorf before. One of my good pals and neighbours is from ah there. So she was sending me all the recommendations for places to go because we got there quite early. A lot of times on these launches, I know they seem glamorous on Instagram. I know the hotel room tours are amazing.
00:04:38
Speaker
And they really are. They're lovely locations. But a lot of the time your land, you go and get the keys of the car, you drive the car, you get to the hotel as it's getting dark. You're back downstairs half an hour later for the dinner and the presentation.
00:04:51
Speaker
You go to bed and you get in the plane to go home again. But this time we landed very early on Monday. What day was it? Monday, Tuesday. can't remember the stage. Wednesday morning. And we got to Dusseldorf at like...
00:05:03
Speaker
10 o'clock in the morning. So we went into town. We walked around. went to this place called Hyde for brunch, which is amazing if you're ever in Dusseldorf. wasn't as expensive as Dublin, but sure where it is. um And we kind of kicked around for the day. And then we went down to the launch of the car, which was in um a large kind of it was like, i suppose, arty Arena, but it was bigger.
00:05:25
Speaker
And that is where the model launched. So we arrived in on a coach um and straight away you see the vast array of lineup from VW. So there was ID Buzz GTX, there was ID 7s, Tourers, all kinds of cars.
00:05:43
Speaker
And this, you know, you've got a register and this big queue and You're meeting people that you've maybe met before and everyone's kind of it's like it's like going to a gig, I suppose, because you're there for maybe an hour before anything happens and then everyone goes into the auditorium.
00:05:58
Speaker
You're told to take your seats and there's a big light display. It's all very, very extravagant. A big countdown, I'm sure, as well. Yeah, yeah, big countdown. and The countdown, everyone, what I thought was for the car, but it was actually for the CEO, Thomas Schaefer, who's now basically a personal friend of mine.
00:06:12
Speaker
And ah as we got from 60 to 1, Mr. Schaefer walked in. um And I have to tell you, Paddy, it was kind of, I don't want to overdo it and say it was emotional, but But there was a piece of music used for the...
00:06:30
Speaker
just before the introduction of the car. And it was essentially how they were trying to portray that, you know, VW is your reliable friend that you can always count on. And it's there for the good times, the bad times and the sad times in the car and the happy times and all the rest.
00:06:43
Speaker
And under pressure from David Bowie and Queen comes on. And I think they maybe had done some work with the track because it was like as if they'd commissioned a choir to add an extra layer to it. or so And it was just, it just was kind of like a a reset for VW. And,
00:06:59
Speaker
you could You can be skeptical about that if you want. Are we to take anything from the use of under pressure?
Volkswagen's EV Future and Audi's Q5
00:07:05
Speaker
But that's what I thought. I was like, because they were very much an acknowledgement of the software issues.
00:07:12
Speaker
They said stuff like, ah you know, why would you let software define a car? Ha ha ha. yeah like They were kind of going, yeah, yeah, we know. We know we've... we've You know, we've learned. and And I did think was that under pressure, you know, had a little hidden hidden meaning.
00:07:28
Speaker
You know, they were kind of almost trying to say, look, we're not going to be arrogant about this. We know there are alternatives to people. We know there are cheaper cars out there. We know there are cars already in the market because that is one of the big takes from the ID. One or ID. Everyone, it's officially called as interesting as it is, as cool as it looks, it really does look cool in the flesh. It is a sexy car.
00:07:48
Speaker
It's not going to be here until 2027. And for a lot of comments last night on YouTube, but that is just too long. Yeah, I wonder, and and I'd said it to you on an an earlier podcast, is this the car they always had planned?
00:08:02
Speaker
Or have they changed their mind, do you think? It's so hard to know. um I think it's such a huge company with so many employees.
00:08:14
Speaker
There is no doubt that it's it's the equivalent of a huge, huge tanker. that is really slow to turn but equally byd have more employees and how come they can do it so i don't know like you could say they're they don't want to be first and a lot of legacy companies are often like that i mean i remember working for a very large media company and we'd be shouting about how come joe.e have all this camera stuff and we don't and And the answer would be, look, let's just let's just watch how the market plays.
00:08:47
Speaker
And when the time to invest is is ready for us, don't worry, we will. And I can't help. and i could good Sorry, Mark, given given the E up is a few years out of production now, you can't have a feeling that they, that this is my theory and it's based on absolutely nothing.
00:09:07
Speaker
I feel like they've looked at the market, as you say there, and have gone, okay, we need something that looks a little bit retro, a little bit cool, and it's going to have to be at a price. And I think they've probably changed direction. Again, just just a hunch
00:09:23
Speaker
And they were very keen to point out that it it is around 20,000, Jared. They weren't nailing their mass to 20,000 because obviously two years from now in terms of economy is very, very different. um But look, even even if it's 22, looking at the interior their only renderings, it again, like the Insta, it doesn't have a bang of cheapness off it. It looks really, really good.
00:09:47
Speaker
Yeah. Well, we still haven't seen the ID.2 yet, though, which is, again, another car which we've seen in previews of a lot, but we still physically don't have here. And, you know, Hyundai almost surprised people with the speed of which they produced the Insta.
00:10:04
Speaker
And I think they they just can from that part of the world. It just seems to be a little bit quicker. And this is a car that's made in Europe and built for Europe. And I've noticed this as well. but's the same with the Tyron.
00:10:14
Speaker
VW are really starting to hammer the heritage, maybe not overdoing it, but even the Beetle got a mention last night in some of the ah literature about the car. The Polo did, obviously, as well.
00:10:25
Speaker
ah Some part of the rear window on the ID.1 is kind of a nod to the Mark one golf. And i like I like that they kind of weave all that stuff around. And I've no doubt that there was a meeting at the board or whoever else. And was like, OK, what do we have that, you know, these newer companies don't? Well, obviously, one thing is heritage. Now, I don't know how much heritage means to your average car buyer. ah Do they care? i don't know. But.
00:10:49
Speaker
force they they were definitely kind of tapping into that a little bit but equally they had so Andreas Mintz the head designer for this car he was across the Mark 8 and was he 7 Golf as well?
00:11:02
Speaker
I don't think so not not sure but so they had two young was Bentley for a long time and I think he's only recently recently enough joined Volkswagen So they are two young designers. And if you watch the world premiere of this, because it was live on YouTube and everywhere else, this guy and a girl had spoke to Boseman last night.
00:11:19
Speaker
And they they you know they they were kind of introduced as almost, here's the kids. They had an input in this car because... They wanted to appeal to young people. And equally, I was asking some of the staff last night, you know, Andreas is obviously the head designer of this project, but are these kind of his protégés? Are these his interns? And it was like, no, no, he's he's like, he's happy to kind of sit back and watch them and teach them and let them learn if they need some advice on something. But, you know, it wasn't the case of I'm the...
00:11:53
Speaker
You know, all singing, all dancing car designer and you're not important. It's my way, have the highway. Yeah, it wasn't like that at all. So it was um like Oliver Bloomer was there. He's going to join us on the show at some stage, I think, as well, Andreas. Yes, I got a confirmation last night that ah they will give us an hour of their time, believe it or not. They have to go to Beijing, I think, ah in the next few weeks.
00:12:14
Speaker
But Oliver Bloomer was there there. was other board members of vwws It was kind of like a show of solidarity, if that makes sense. So tell us about the car itself. So we know that it's ah bigger than the up.
00:12:26
Speaker
Bigger than the up. Yeah, I mean, it's essentially being portrayed as a replacement for that. But as I mentioned, the Polo did get quite a few mentions in terms of size. It's 3.88 meters long, so a little bit longer than the Insta.
00:12:40
Speaker
Doesn't look as tall. it kind of has a more coupe look. Those rear arches flared look really great. The alloys, again, ah they ah they pre-production alloys, but they look class. and I think proportion-wise, they kept going on about this three to five ratio and blah, blah, blah, blah. And they were like, did did you mention that in your video? I was like, no, I was a little bit wanky to start talking about that kind of stuff. but Which they all they all laughed, at my honesty, because obviously someone had slaved over that script probably in revisions of it 20 million times.
00:13:09
Speaker
Yeah, of course. You know, but it's it's a good looking car. It's got lovely shoulders on it. there just The stance of it, the the front, it it looks great. I just think, you know, as many people have said, why does it have to take so long? They did wheel out the ID2 last night as well.
00:13:25
Speaker
and I think there will be some actual trips towards the end of this year for ID2. So with that in mind... Was it the same ID2 or was it a more progressed version?
00:13:38
Speaker
I think it was possibly... i don't know the exact same car I saw two years ago. I don't know about that, but you still couldn't see into it. um And it wasn't actually on display. It drove through the kind of the show and then disappeared again.
00:13:52
Speaker
Obviously, they wanted to make the focus about the... yeah The ID.1. So is ID.2 due this year at all or probably early next year? But you reckon you might drive it this year? I might get to drive it at the end of this year. I i think realistically, yeah it's going to be next year, but it but it will be next year. But again, that was a car two years ago. They said it would be here in 2025. I mean, yes, if they produce it to journalists at the end of the year, that is technically 2025, but that doesn't help customers.
00:14:18
Speaker
Any clue then with the ID.1 in terms of battery sizes or the like? So I was even dropping on some conversations last night and ah good good journey both mark we we both know people in these car brands, particularly in Ireland, are obviously listening to what we're saying.
00:14:37
Speaker
um i i i sir I get the sense I wouldn't rule out a couple of battery sizes for for both of these cars, perhaps.
00:14:49
Speaker
I did ask, would there be GTX? And it was like, I don't think so. It's front wheel drive, blah, bla blah. OK, we're fine. i I just wonder, would there be a mid 30s to high capacity battery, which they don't currently offer in this car? Because I can't think of how else they will get it down to that sort of price.
00:15:10
Speaker
Well, if 32 kilowatt hour battery in the EUP, that was the latest iteration as it has a 32, which is respectable enough size. So they do have, I know that's probably a different battery tech they're going to use, but are they saying a 300 kilometer range roughly?
00:15:27
Speaker
They didn't really kind of go as far as that. I mean, there was definitely 250 mentioned. That was another area that people were kind of kicking it over. They're saying, oh, like the Insta is already out, has more range. um I mean, that car is quickly going to, the same way as people, the benchmark for lots of cars is a Model 3. The benchmark for the smaller car is going to be the Insta for the next couple of years. um So, yeah, I mean, it's probably a 250 car then, right?
00:15:51
Speaker
Yeah, 250. I mean, 300 would be great. But again, couldn't tell you the last time I drove 250 kilometers in a day. You, on the other hand, probably would. but um Yeah, i have well, I have done. But and just for me, for some reason, and I've driven a lot of EVs, for some reason, 300 kilometer range for me, optimum.
00:16:10
Speaker
But for other people, you know it's not you know it's not necessary. And then that's the point. like This is going to be an urban car and and like you know like the spring and the like, you know maybe it's going to spin around cities. So maybe for cost-saving measures, it's going to have a smaller capacity. But and you know look, I drive a an E up from Dublin to Cork the odd time. It's not a massively pleasant experience range-wise, but and you know it's not the right car for the journey I do. But most of the week, I'm driving it around a village. So...
00:16:38
Speaker
Yeah. And for that, it's perfect. and So pricing, do you reckon, i know for, they're saying 20 odd, but for Ireland, it's probably what, a 26 grand car Well, they kept talking about the ID.2 being 25 grand car. So, look, I'm sure there'll be a few different trim options.
00:16:58
Speaker
I think they'll have to get it somewhere between the Inster and the Renault 5. Yeah, and weirdly, we're starting to to see cars we'rere we're starting to see cars cheaper in Ireland than in other countries. Have you noticed that?
00:17:11
Speaker
Inster, for yeah example, is a prime example. and Slightly, slightly less spec on the Irish cars, but nothing really that you'd be too worried about. um So, yeah, the yeah and and also the gap is definitely closing on if you want an EV version. In some cases, get there is no gap. It's the same.
00:17:34
Speaker
and So, yeah, umm look it's getting better all the time. It'll get better again before the end of the year. Yeah. We do have Alan Bateson as well, brand director of Volkswagen Ireland coming up on the show in the coming weeks. So and he might be able to give us bit more insight in terms of delivery times times and pricing, etc. So we'll have to ask him nicely.
00:17:54
Speaker
Yeah, nine new cars coming from them between now and 2027 in announcements of cars. We won't see probably the nine models, but they say they're going to be the biggest player for EVs by 2030. Do you think we'll see the Beetle back?
00:18:11
Speaker
No, no, it's done. I don't know if that's true. I have it on good Italian. don't think it's done, done. Do you think it's done? Well, I don't know how successful the rebirth of it was. I mean, it definitely is old.
00:18:26
Speaker
Yeah. bo It's funny. I've seen, i saw one the other day. I saw a black one the other day and it looked really good. And I was, you know. I just wonder in this world of retro suddenly being back again, if they redid it, if they redid it as a smaller car, it was always too big. that The newer one was just too big. There's too much dashboard.
00:18:46
Speaker
It's too bulky. and the You know, if if they brought it back as a scale down... car I think in this you know modern climate of retro EVs I think it has it has a home but ah again we'd have to ask the big man when we see him over some creamy F-pints yeah I think with the ah current management set up in VW ah i don't I don't think it will happen but you'll look You never know in the entertainment game. Also, a recommendation that I got ah book-wise, and I bought it today.
00:19:20
Speaker
And it's probably only for people that are in this game ah rather than general of interest. But I don't know. We'll be talking to Lee, as I mentioned a bit later on. He has a degree in economics, and he works in a car dealership. But this book is called Car Guys vs. Bean Counters.
00:19:38
Speaker
And it's basically the story of General Motors and how the accountants will try and still will try in car brands, how they fight with designers, how they fight with pretty much everybody to save money. And we can save 50 million if we put a less strong camshaft into this model.
00:19:56
Speaker
And the obviously, naturally, the car people are like, yeah, but will we'll lose our reputation. Our customers will hate us. What are you thinking? And the accountants go, yeah, but we'll save $50 million. dollars And it's ah it's just a really interesting insight into massive car business and what can go on in them.
00:20:14
Speaker
And is yeah is that ah is that an on Amazon and Kindle? or is it It's on all the places. Yeah, you can get a physical. i don't think there's an audio book. um But, yeah, I got it.
00:20:26
Speaker
So car guys versus bean counters. Okay. Then last week when we were talking to you, you were just about to jump on a plane you know and to drive the new Audi Q5. How did that go?
00:20:39
Speaker
Excellent. Last rain when we got to Malaga. Last rain. um Catherine Byrne, who is the one of the Audi representatives in Ireland, was with us and she was jumping from one side of the puddle to the next had no jacket with her. I was like her dad saying, Catherine, how did you come to my, well, it's Spain. I didn't think we need one. And she had to get an umbrella, which nearly took off. So the weather was shocking.
00:21:02
Speaker
Next day for the actual driving, the weather was lovely. So it all worked out fine. um So Q5, it's, I think, pretty much Paddy the Carr is now here in Ireland. You'll probably start to see them on the road.
00:21:13
Speaker
and We are getting in Ireland the option of a front-wheel drive petrol or a quattro. Most European markets will just have a quattro onwards. They're not going to bother with front-wheel drive. There is also a 2-litre TDI, so there's petrol and and diesel, both at 204 brake horsepower.
00:21:27
Speaker
I also got to drive the SQ5. Oh my God. Both videos are on my YouTube channel if going have a look. It has a V6 engine, mid 300s brake horsepower, Quattro, amazing steering.
00:21:42
Speaker
They've done some really nice tweaks to it. I'm glad I drove the standard car before the SQ5 because when you do the other way around, you can't erase it from your memory. No. and Just look at the website here, 11850 the
00:21:56
Speaker
Now, obviously, that's the entry price. You can put on nicer wheels. you can yeah I got the guy who was videoing me for the SQ5. I sat into the car.
00:22:07
Speaker
He put the microphone up to the quad exhaust and I revved the bejesus out of it. And you want to hear the noise of the car is absent. It's not fake engine sounds. It's...
00:22:18
Speaker
These are real exhaust. You can hear the water spitting out of the tailpipes as i ah I'm giving it the beans. um Amazing, amazing car. The Q5, look, a great family all around. The Q5 is Audi's best-selling car of all time. I
Audi A6 Sportback e-tron Launch
00:22:32
Speaker
didn't know that.
00:22:34
Speaker
And it's been around for 15 years as well. it yeah In my head, it's still a fresh car, but 15 years is a long time for so they sold... 1.6 million of the first generation 1.1 million of the second one that just finished so will they will they break the million mark again with this car i'm sure they really want to um but yeah look the standard car was you know not amazing to drive or anything it's just a good solid family car good boot space 520 liters The adjustable bench for the rear passengers get more legroom if you need it.
00:23:07
Speaker
Nice interior. I'm still not bored with that. So where the door handle for the driver would be, there's now the control panel for the lights and the mirrors. And it means it's much wider. So you can't get a natural grab on the driver's door to close it.
00:23:23
Speaker
Right, okay. You'd have to kind of see it or feel it to understand, but it's a bit of a weird... don't get it. So starting price, $71,115 for the and then for the Yeah, so it's it's definitely in price. The Sport back is there as well.
00:23:41
Speaker
Yeah, yeah, it's jumped in price not jump to price from from where it was when it came out originally, but look, all cars have. I'm looking at the pictures here as well. a Huge screen in the center console. Impressive layout, good quality interior, et cetera, i imagine.
00:23:54
Speaker
Yeah, OLED screens, ah the option of a separate screen for passengers, which we saw in the Q6 e-tron last year as well. ah You can do your own nav. I think you can watch things without disrupting the driver at the same time.
00:24:11
Speaker
You can pair some headphones to it. So, look, all that stuff is is extra. Not quite as dear as the Hyper screen that was in the Mercedes. Wasn't that like 13 grand or something for that? Yeah, was an EQS. That was fabulous, though. Oh, good money. Fabulous.
00:24:25
Speaker
And another car that they launched this week as well domestically was the A6 Sportback e-tron. um I know you were away when that was launched, but really good-looking car. That's kind that's certainly one of the prettiest EVs around now, I think.
00:24:39
Speaker
Yeah, yeah, it has body kit on it on presumably the S line and it looks fantastic. Now, I thought in white, the side skirts were a little bit too much in the darker colors.
00:24:51
Speaker
It looked all right. um Yeah, starting price 74 and a half thousand euro, which I know is a lot of money, but isn't awful
00:25:03
Speaker
No, it's not awful, but I did see that the details of it when you go a bit higher up the food chain in terms of spec. You are looking at like the Sportback e-tron Quattro's 90 grand.
00:25:17
Speaker
ah The S6 Avant e-tron, 111.745, but... um But look, I think any of those executive EVs are now starting with a 7. I mean, that's the norm now. Yeah, I mean, look, it's in and around the BMW 5 Series, touring money,
00:25:35
Speaker
um Yeah, like it is it is there abouts. ah Rear wheel drive, the an output of 210 kilowatts, there's launch control on the higher models, 800 volt technology, 225 kilowatt charging is standard. Like it's, yeah, it's, I was going to say like you can't even compare it with the ID.7. It is, it's it's a very different car.
00:25:59
Speaker
Yeah, but like that's the thing about ID7. Would you be
Upcoming Model Launches Discussion
00:26:03
Speaker
top spec ID7 tour or would you be entry level A6 Avant e-tron? Because they're similar money.
00:26:09
Speaker
Yeah. Well, I think for some people, the Audi badge would be a bit more impressive, but I was only in an ID.7 Tour again the other day going to the airport in Germany. and It's great car. Just a great car.
00:26:20
Speaker
They drove it a few few weeks back and it's one of the it's one of those cars that you really could live with really well. I mean, for my spin from Dublin to Cork, it just was nailed on. It was just perfect for it. you know Charge it at one end and get there comfortably at the other end. of It you know was ah was a 500-kilometer car all day long, no matter what you did. Really, really impressive.
00:26:41
Speaker
and so I'm trying to think what else that we did since i last spoke to you we covered Tyron last week so we got that in and yeah it's just been a it's been a mad couple of weeks kind of quieting down now for the next are you on any launches next week and no nothing next week ah the week after I'm getting to drive the new Dacia Bigster in Marseille oh wow I'm excited about that car actually looks really impressive Yeah, so that'll hopefully be here, I'd imagine, and second half of the year.
00:27:10
Speaker
um Got the Renault 4 coming up. Got the new electric Ford Puma coming on up. I'm sure there's few other bits as well that I'm... And when are you driving the Renault 5?
00:27:23
Speaker
and So the Renault 5 is going to be launched in Ireland towards the end of this month. and I know some people at Renault, shout out to Jeremy if he's tuned in.
00:27:34
Speaker
ah He's one of their product people. he is currently testing a green one at the moment. So if you see it around Dublin, there are definitely a few getting some miles. Yeah, give him a wave.
00:27:45
Speaker
He is actually a massive car fan. I think he has 944 in collection. tin he has a nine four four in his collection So, um, he's a proper car guy. always enjoyed chatting to Jeremy. Yeah. He's a, he's a, he's a car nerd and nice as possible way. So yeah, you might see a Renault five, um, on Irish plates or a few of them.
00:28:02
Speaker
I I'd imagine there'll be some yellow, yellow ones well. I know they have had a static one in Dundrum town center, uh, for the last few weeks as well. If you want to have a look at that. Yeah. I haven't driven it yet and it's, it's what I'm considering to replace the E up next year, but, um, it depends on how obviously, because I, you know, the ID one would have been suitable, but, uh,
00:28:21
Speaker
I need to change September next year and I won't be here. Yeah. Yeah, I know. That's the thing. And if it was there there, you know, you potentially there would be a car. So, yeah, look, maybe they can speed it up somehow.
00:28:35
Speaker
Round of five is good. Good. I found it little bit. drove it in, I think, Marseille as well, actually. And was a little bit wet, a little bit slippy through the front wheels. 150 brake. Mightn't sound like a lot. It was actually perfect. um Nice, nice car on twisty roads. Good fun to drive.
00:28:51
Speaker
And it just looks great. But just please buy it in bright colors if you're getting one. Oh, yeah, it has to be yellow. So tell us. I do like the green. Yeah, the green is nice, actually. Tell us what we have coming up after the break.
00:29:04
Speaker
All right. So after
Fiat CEO on EVs and Stellantis Strategy
00:29:05
Speaker
the break, a few weeks ago, I was at the launch in Turin of Fiat Grande Panda. And I was at the, well, it was the old Fiat factory, which is now, the track is still on the roof.
00:29:16
Speaker
They shot the original version of Michael Caine and the Italian job in the car park. and And we launched and had a look at the new Grande Panda, which will be coming to Ireland this year.
00:29:33
Speaker
And we weren't meant to have an interview with this particular individual. It was meant to be some marketing and PR people from Fiat. But all of a sudden, Olivier Francois, who is the CEO of Fiat since 2004. So has seen few...
00:29:49
Speaker
so he has seen a few battles Right. in In his career. um We were at a round table with him, but there was only a handful of us there. And he really was speaking very, very openly. In fact, one of the answers he said, so well, don't publish that then.
00:30:06
Speaker
And everyone laughed because that's not how it works in this business. So after the break, you will hear from the boss of a massive car company who basically want you to know about them again because they have new product finally. And he touches on that as well. He's quite honest about why there's been such a gap ah for Fiat passenger cars.
00:30:26
Speaker
So stay with us. It's on the way. Welcome back to the Drivers Republic podcast brought to you in association with Dundeele Motors with Ireland's widest selection of cars for sale from certified trusted dealers.
00:30:37
Speaker
The right car for you is on dundeele.ie. So Mark, let's ah let's hear this interview with Fiat CEO Olivier Francois. So I'm going to start with, because I have to kind of introduce these bits so they make sense to everybody listening, because as said, it was a round table. It wasn't a one on one interview. So let's start with him talking straight away.
00:30:58
Speaker
We just got straight into it. ah He reckons there is no doubt EVs are the way forward and more people need to give them a bit of a try. I think that electric cars are definitely the future.
00:31:10
Speaker
That to me is not something that I question. I mean, wrong and by the way, but I don't question that. I love them. Second, when people get into an electric, they often do not come back or go back. I mean, I'm even, and I'm seeing that in America. i mean, people really love it. We were discussing yesterday of the Cybertruck. Is it ugly? Is it nice? But people like it, you know, and they like driving it.
00:31:39
Speaker
um You'll find a torque that obviously doesn't exist in any other, you know, except a space rocket or a rocket ship or something. It's really pretty crazy.
00:31:51
Speaker
ah People who drive the 500 are thrilled. But most people have not driven an electric. So ah if you leave it to just ah the natural ramp up, you know, the renewal of a car every eight years or so, it will surely take time.
00:32:08
Speaker
Right, Paddy. Next part he discussed was the prices of ah EVs. He wasn't making specific reference to any particular brand. He just was talking about EV prices in general.
00:32:19
Speaker
But he also touched on and does several times in this interview on government incentives that, and especially places like Germany, have just dropped off a cliff. 100% of the car makers who have literally mortgaged their house to invest in electric and now they are left you know with no real incentive for customers to buy it and the cars are horribly expensive.
00:32:42
Speaker
I drove the new Escalade EV the other day. ah should not speak highly about a competitor but I will. It it is really remarkable.
00:32:54
Speaker
The only thing that's not remarkable was the price. I didn't expect it to be to cost $160,000. It's still a GM. I mean, it's not you assume i mean it's not a Bentley. um So obviously, these are expensive objects, very well done, but there may be some misalignments between the you know the market ability to pay in volume.
00:33:20
Speaker
and this inflating offer of ah beautiful EVs that are popping up every day. So clearly, I think that...
00:33:33
Speaker
incentives were a very effective way to reconnect people, to connect people or to plug people to play in the electric cars.
00:33:46
Speaker
But um yeah it will take time and and we will have to to hold tight. So coming up, he gives us a really good insight into where Stellantis sits in the grand scheme of things. A huge, huge and group in the in the car world for anyone who doesn't know about them. And and obviously where Fiat sits within that huge group.
00:34:09
Speaker
At Stellantis, we are a little bit product the the product of of two eras. You know, we had the era of FCA where we were a little bit shy on electric.
00:34:21
Speaker
and the era of Carlos where we um aggressively and ambitiously wanted to conquer the world of electric.
00:34:32
Speaker
And I think that today somehow we have a little bit, you know, was working on my Super Bowl commercials that basically celebrate the fact that we have both and in various ways, creative ways and so on. And while while working on these commercials, I realized how lucky we were and that we have been through these two eras, you know, very cautious pragmatism for a few years. And you know, the product you see on the market today are really, ah were conceived, you know, long ago, I mean, starting with the one we are just launching today.
00:35:04
Speaker
And so we are the product of these two things, you know, are cautiously pragmatic and ah technologically ambitious. um And if you put that in a shaker, you have um the possibility you have an offer for everyone.
00:35:20
Speaker
We don't want to, they don't want to force people to make a choice. Then he moved on to the topic of, he touched, he mentioned Trump a couple of times in the American administration and, you know, how...
00:35:31
Speaker
how EVs are definitely a thing for America, but he doesn't he he totally gets that the US government do not want to force anybody into any particular type of fuel type.
00:35:42
Speaker
And I think he could apply that same logic to Europe. I don't think any particular brand, they're all talking about at the moment and making many, many models for many, many different types of customers. Freedom is super important.
00:35:53
Speaker
And I would almost tend to agree as long as everyone has an opportunity has had an opportunity to try an electric to drive one because then you choose. you know That's my only little thing. Most people have not even, you know are actually even religiously, I mean in this country, Italy, it is a little bit frustrating to work here because there is a literally camp.
00:36:14
Speaker
you know it's ah it's a account It's frustrating to work here. Let's put it in context. it is It is a delight to work here with Italian, for Italian. But there is an element of Italian-ness, a positive element of Italian-ness, which is a passion for engines.
00:36:32
Speaker
You know, they love engines. We love engines. Perfect. But then when it comes to electric, there is, and that's the frustrating part, a whole big portion of the public who has never put their, you know, on the so driver's seat of an electric car, who's saying that it is a washing machine. You know, that's the saying, oh, it's a washing machine on wheels, so we'll never drive that.
00:36:56
Speaker
That's a bit religious, it's a bit dogmatic. And that part is is frustrating because actually electric cars are the best cars. um and it makes total sense to go electric with an Alfa Romeo or a Maserati once you master the automatic range and the charging time and so on. But in terms of pure performance, it does make sense. It does make sense.
00:37:22
Speaker
So this ah traditionalism is a bit something we need to to cautiously educate. It's more education and it will take time.
00:37:33
Speaker
But when people drive electric, they don't go go back. What we need to do, as I said, actually today, is one, make electric accessible, simple infrastructure, charging time, finding the charging station, making it not, you know, not 160,000 dollars for for jim a dollar for GM car.
00:37:54
Speaker
um and and make it super beautiful, iconic, nice and and and that's what I did with the 500 in the first place. you know I said I'm going to sell it to 90% of my customers who have never driven an electric and and don't really want an electric dip down but they want the 500 so I want them to want the 500 more than then not want an electric, you see i mean?
00:38:17
Speaker
And so we need to be iconic and beautiful and desirable. And here with this new car, I think we have a perfect cocktail because we have something that is both accessible and simple.
00:38:28
Speaker
And at the same time, it is sexy. But yeah, it will take time. A more focused message, a more substantial message in a most more focused manner.
00:38:39
Speaker
And Mark, what's this about Shaggy? So Shaggy, Mr. Boombastic, and it wasn't me and all the rest, ah features in the the TV ad for the Grand A Panda.
00:38:50
Speaker
Also, i I'm nearly sure Shaggy is married to an Irish girl, by the way. Could have got wrong. think he is. I think you're right. Because I interviewed him for another thing a few years ago. So he's in the he's in the ad. I don't know if it's aired yet, to be honest with you, or maybe it's on YouTube, but it's him singing along in the car. I think there's been some reworking of of lyrics, but it it kind of leads him on to a ah wider question. He touched on Super Bowl this year and Super Bowl a couple of years ago and how much that was a huge thing for car brands. Two years ago, they were all on it.
00:39:21
Speaker
And he said this year, it was just us because a lot of brands are kind of, they're lost. They don't know what they're saying.
Super Bowl Ads and EV Promotion
00:39:29
Speaker
But he also had an interesting insight here and he also talks about Carlos Tavares, who was recently departed to Stellantis, who would often remind him of, yes, it's important to get the message of electrification out there, but... And i'm I'm frequently reminded, by the by the way, by my boss's last words, Carlos, he says, you need to emphasize and so on but at the same time,
00:39:51
Speaker
I don't want to advertise for a category. I want to advertise for my car, my brand. The industry is lost. They say, what are we supposed to communicate? You know, and I think that everyone had cooked, everyone had cooked commercials for electric.
00:40:09
Speaker
I suspect. What am I supposed to communicate now that Trump is here? So because I started very late in the process because I'm just disorganized, I was able to do to create two commercials that say exactly the opposite. They have choice. Now, if I go two years earlier, 100% of car makers were on Super Bowl.
00:40:28
Speaker
You had everyone, Volkswagen, Kia, Hyundai, US, Volkswagen, it GM, Ford, everyone with one message, you know, the same message for everyone, which was electric. I have an electric car and electric cars are great.
00:40:42
Speaker
The only, um the biggest beneficiary of the next, of Monday morning, you know, so Super Bowl is on Sunday night.
00:40:53
Speaker
On Monday morning, you know, who sold cars? of all these, only one. The only one who never advertised on Super Bowl, Tesla. Because really, all these guys were saying, buy a Tesla.
00:41:06
Speaker
So ah this is why, i if you, everyone was saying electric cars are great, and by the way, I have one. So next morning say, yeah, electric cars are great. So I buy a Tesla. That's the only one I know, you know.
00:41:20
Speaker
And um so that's the limit of going, you know, mainstream communication, celebrating electric as a generic thing. So you want to make electric very ownable and very for your brand, you know.
00:41:34
Speaker
So a muscle sort of electric muscle cars for Dodge, you know, electric freedom for Jeep and so on. In our case here, let's go back to the only decent brand in the world, Fiat.
00:41:47
Speaker
um In our case, it's electric, it's accessible electric and simple. And Mark, you put a direct question to him about this. Right. So I wanted you to know, you know, the last generation 500 was around since 2007.
00:42:03
Speaker
And they're talking about a new one and it'll be here. But my question was, do legacy brands, and we've touched on it with ID, our chat about ID1 as well, did they just take too long to get a model from inception to the forecourt?
00:42:18
Speaker
You mentioned in the slides today, Fiat 500 2007 design, there was a gap of 13 years mentioned. Do legacy brands take too long to get from a concept to a showroom?
00:42:31
Speaker
And if so, how do you speed up that process? So speeding the process is all a matter of having something you want to do and something you can do.
00:42:44
Speaker
It's always about can and want. And I explain. um want to, but ah I want... Want is I have exactly the right storytelling. I have the idea. I know exactly what I want to tell. You know, the purpose.
00:42:58
Speaker
That's what makes me want. So from day one, back in 2011, we knew that we wanted to do a B-segment that would be not a hatch and because of that, that could be inspired by the old panda of the 80s in a larger format.
00:43:15
Speaker
Maybe it's a horrible idea, but we know soon enough, but it has been mine for the whole time and this man here was the only one to understand it. and interpret it and make me exactly the design I had in mind.
00:43:28
Speaker
I wanted because I had, it was not just to check the box, like I need a B segment, can someone kindly design B hatch for me, you know, and put a Fiat logo on it? No.
00:43:40
Speaker
It is driven by a purpose, a storytelling, a whole, you know, I use my 125 years of history and I take and I borrow the lovable part of that history to inject all this in an object that makes sense to people today.
00:43:56
Speaker
Now the can. is another story. um And my problem in 2011, 2012, 2013 until recently is that all the design was ready, but I didn't have the platform.
00:44:10
Speaker
So because the CMP is a bit too big and too expensive, and anyway I didn't have Peugeot and Citroën with me back then, No, but there were some, by the way, conversations about... I never said that publicly, but is it a secret?
00:44:27
Speaker
I don't think it is. don't know what you want to say. Oh, I'm going i'm going to tell you something i'm so i'm going to tell you something crazy. Very interesting. that i um The first time I met Tavares... So I met Tavares before he became my boss.
00:44:42
Speaker
I went to Tavares as the Fiat guy, as a desperate Fiat guy. The Punto was gone. you know Imagine, you know I was in your shoes, Gaetano, of last year when the 500 of 2007 is gone.
00:44:58
Speaker
You used to sell 200,000 pieces of it every year and it's just not there anymore. And you're like, How am I going to survive that? And I'm in the same situation, 2013, Punto dies, no future, no platform, no will, no money, no Macchione, you know, had to put money in some other problem more profitable projects.
00:45:21
Speaker
So I went to Tavares, who just arrived at PSA. to discuss the possibility to create a car together. And i said and and it went it moved forward. It was called Project Argo, which is part of the name of the Fiat Argo, but it has nothing to do. I just like this name, you know.
00:45:44
Speaker
And the idea was to make the current 208, 20, okay, so the one before ah and together with a Punto in this case.
00:45:54
Speaker
So like not that baby that was, I say look, I surrender, i will never do that. So let's go back to the generic, check the box, you know, and 208 would be surely a great car.
00:46:06
Speaker
It has great stances. The previous Punto was sporty, you know, with this fake Maserati look. We can probably easily do that on any 208, whatever their design will be.
00:46:19
Speaker
and we talked, you know, and and And in 2020, when we had the first dinner, you know, of the merger, I said, oh, I know you. I said, yeah. so So that's how obsessed I was with renewing the Punto. And that's about the can. We could not, you know. I had to find another...
00:46:40
Speaker
car maker and then that thing, I don't know, didn't happen, was killed. I mean, then because then I left it in the expert hands of other people and who decided that, you know, maybe they didn't want to give an advantage because that's always the thing, you know, if you produce cars together, the transform to chaa me transformation cost of the donor car will ah increase. So you are kind of helping you know your partner, but which is the whole soil idea behind partnering. But we could have done better as than a partner that has been looked and by the way, look where we are. So that's a little bit
00:47:16
Speaker
what happened. So yeah, we we we wanted, but we could not. So, and now you have a meeting of the wants meet the needs, you know, and the can. So, it was nice. One question that probably everyone should have asked him was about his old boss Tavares and the pay he was getting. You can only assume Olivier Francois, who we're talking here, is also a very well-paid person.
00:47:41
Speaker
individual but the next question came from one of our colleagues Paddy Dave Humphries who was with us on the trip and Dave also has a podcast called 50 to 70 if you want to check that out Dave Dave is a huge huge car head and he I know Dave was itching to ask him this question from the night before we were chatting a about what were you going to say to him and ah So essentially sales of the Fiat 500 in Germany where were doing quite well.
00:48:08
Speaker
And then they just fell off a cliff. You might have seen... Production was halted last year. They were closing down factories temporarily for a month, giving people time off because they just they couldn't sell the cars.
00:48:19
Speaker
So but that was the question Dave put to him. And he gets a little bit defensive about it. But it also led him on to a story then about them having a huge backlog of cars sitting in compounds and they had to do something about it.
00:48:34
Speaker
so
Fiat 500 Electric Sales Decline
00:48:35
Speaker
look in So we started in 2020 with stating that we were almost immediately the most, one of the most sold, I think the second most sold electric car in Europe.
00:48:49
Speaker
In 2021, we confirmed that position. We were second to only Tesla and and close actually. In 2022, we were number one in Germany in um in the segment or in total. in total
00:49:08
Speaker
Twenty-three
00:49:12
Speaker
was a record year. So the idea generally in the company is that the 500 Electric is one of the most exemplary successes. So it's seen as a huge success.
00:49:24
Speaker
So there's total disconnect between um between what you state and what we feel. But I obviously understand where it comes from and you are not wrong.
00:49:37
Speaker
What happened then, so literally it's seen as like It was seen until like six months ago, you know, as a very, very bold, visionary, successful move.
00:49:50
Speaker
a Total pride ah of Italy. You know, we invade all the cities with our little Italian. And still, by the way, as we speak, as bad as our sales have been in the last months, for reasons that have nothing to do with with us,
00:50:11
Speaker
We are still the number one is electric A segment, you know, in ah in an ocean, by the way, of very affordable cars, such as the Spring and the Koreans and I don't know who else we have in the segment. so ah So there is a huge difference between market share and market.
00:50:27
Speaker
So we had an incredible market share in a growing, in a booming market, and that was called success. Then all of a sudden, with the the states pulled the plug on incentives, last of which was Germany.
00:50:42
Speaker
We still have a very good market share, but they had no market. But when the when the states one by one pull the plug and there is no market anymore, we are still at 50%, if not more, by the way, because at least we were we were a little bit less selling on the price than others. But but the market is shrunk. So what I hope is that there are two hopes, you know. but By the way, it's interesting, you know, one month, I think it was October.
00:51:09
Speaker
and it was in Germany. My partner in crime here when came to me said, Olivier, we have inventory in Germany. This is becoming a problem.
00:51:21
Speaker
Cars are getting aged. um You know you't want to leave a battery electric car aging on a compound. Let's put some extra money and and go. I said, how much would you put?
00:51:34
Speaker
and so it was super logical uh was i would put exactly what the buffer was putting know fiat which just i said but it's going to kill us it's going to cost but uh but let's try so for one more experiment you say we are just going to replace the the german state we went overnight back to what we used to sell during the buffer.
00:52:02
Speaker
So people don't care where the money is coming from. They just want us to bridge this 6 to 9,000 euro gap. This is it, you know.
00:52:14
Speaker
um So once you have that bridged, we will start flying again. So the good news is that when the old, old, old 17 year old 500 had to be discontinued,
00:52:29
Speaker
We made the right decision. you know It would have cost less obviously to to adapt the old one, but we said let's invest a little more. But we'll do at least a car that will be here to stay another 10 years.
00:52:42
Speaker
um so we it It's more costly because we obviously have to go ice on a platform that was conceived for electric.
00:52:53
Speaker
But we will be at the by the end of the year. We'll have a modern hybrid 500 and not the 2007 generation. So, and it will be built here.
00:53:05
Speaker
And we think that we can easily, you know, we were we have been selling, the worst year was 120,000.
00:53:13
Speaker
and peak years were, peak years which were flat, which were like, we had five years straight around 190,000 to 200,000 per year.
00:53:24
Speaker
So and this is going to provide a lot of work to Mirafiori and it's for the better and it will be, and we'll put what we will put in the hands of the European consumer is a really modern and and good looking car instead of you know putting lipstick on a pig every every two years. So ah it's it's a good saying. It just means that for a year we are without an offer and and it is obviously frustrating. But I would not call it um a fiasco.
00:53:55
Speaker
know it It was a tremendous success until We are just left with a fantastic market share and no market. So he did talk a about price drops, maybe price drops coming up in the next five years as EV technology changes. What did he say about that?
Predictions on EV Cost Reductions
00:54:14
Speaker
and This is where he was really just kind of talking jazz.
00:54:19
Speaker
So he starts talk about prices of batteries and technology in general. And then he said, I'm only guessing here and I can only talk about my own cars. But, you know, by 2027, things will be a lot cheaper.
00:54:31
Speaker
And Steve Fowler, who's a very well-known journalist in the UK, he said, well, what are we talking? How much? And ah he said about €5,000. And I said, when?
00:54:43
Speaker
And he said, ah by 2027. You'll hear the rest what he said now. it supposed It is supposed to go drastically down. So, 27. So at this point, obviously, we probably can... But not just for us, you know, it's technology that is coming. And so that will help. You know, what is a little bit of pity is that the government incentives should have created the bridge until then.
00:55:10
Speaker
And now there a bump, you know, no government incentives. Still the request to sell a lot of these because of CO2 targets and the necessity of selling them because of CO2 and the high costs and no incentives. So this is really a perfect storm. If I had to guess, and that's my educated guess, it would be probably five grand.
00:55:32
Speaker
When people hear this news, they might go, okay, well, I will wait till 2027 to buy a new. So don't write it. You ask me yes. Too late.
00:55:45
Speaker
I mean, we're expecting the cost to go down, you know, a little bit like everyone has in mind the big TVs and all this. and And actually, it's going to be more like a scale than a curve. You want the steps to be as big as possible. yeah I don't want 5,000, I want more, you know, because then yeah we okay the guy I was supposed to not be with you today, I don't know i told you i was really not supposed to be with you i was supposed to be in Serbia to start production.
00:56:15
Speaker
So the everyone is everyone is in Serbia as we speak and now I need to connect with them to say our serbian colleagues to have confirmation that everything i I said this morning is not bullshit.
00:56:30
Speaker
So there you go. That's our first ah automotive CEO on the podcast. Won't be the last. Hopefully not.
00:56:39
Speaker
Well, Leslie gets very upset by this one. Yeah. I think he's on Instagram. Some the guys were saying he gets a lot of photographs with celebrities and stuff. So he got one with you, I hope. Did he? No, no, no, I don't really, I don't, I don't ask for these things.
00:56:55
Speaker
Olivier Francois is his name anyway. He is the CEO of FIA, but he's also ah heavily involved in Solantis. He's chief marketing officer for Alfa Romeo. um So yeah, that's him.
00:57:07
Speaker
Right. Part three of the podcast is chat with a car salesperson. What have you always wanted to ask them? Very welcome back. We need longer breaks, Paddy. they they're just They're just seconds, but maybe that's everyone's happy with that.
00:57:21
Speaker
Yeah, they're a bit brief. Not even time to boil the kettle, but sure luck. Hey, if you want to insert a sponsor there, but you know what? We haven't already ah because Drivers Republic podcast is brought to you in association with Dundee Motors, with Ireland's widest selection of cars for sale from certified, trusted dealers. The right car for you is on Dundeele.ie.
00:57:42
Speaker
Now, I'm very excited about this next part of the podcast, Paddy. Yeah, because we've always wanted to ah ask a salesman some questions.
Journey of Lee Fitzpatrick from Spirit Skoda
00:57:51
Speaker
And we have ah we have a very good one, a very experienced one here now. Lee Fitzpatrick from Spirit Skoda. Lee, welcome to the show.
00:57:59
Speaker
Hi, guys. How's it going? So much so, Lee, that we're recording this at 7, nearly 8 o'clock on a Thursday evening. And you said to me, can you just give me two more minutes? I'm on the phone to a customer.
00:58:09
Speaker
It never stops. It's dedication. Yeah, no, it's ah it's a busy time of year and I suppose a lot of the time just with kind of how busy it is in the showroom during the days, and it's kind of this time of the evening when you have a bit of time to yourself and you can make the calls or do the emails and all that sort of stuff, you know.
00:58:29
Speaker
And is that, like, do customers ever say to you, not in a giving out way, but just they wouldn't expect to hear from someone like yourself outside of office hours? Are they shocked? Yeah, like you do get it sometimes, you know, God, you're still there, you know, and, you know, it's kind of only explained like how busy it is during the day there.
00:58:47
Speaker
But they're they're really appreciative of you taking the time, I suppose. as And, you know, obviously in sales, sometimes you have to put in the hours to get the results, you know. So Lee, tell us about your own background. How did you get started in car sales and and where how did you get to where you are now?
00:59:05
Speaker
Yeah, so a funny story. So I yeah um i had no intentions. i've I've always loved cars, always had a a massive interest in cars since I was a child. And one time, it it it was 10 years ago or just over 10 years ago, I was in buying a car and the lady on reception was actually my babysitter when I was a child.
00:59:27
Speaker
And then We were chatting away and she goes, I was in college at the time, i was in UCD studying economics and ah she was like, oh, what's your plans for afterwards? And I said, God, I really don't know. Like ah I might take a year out, am I might travel, am I might do X, and Z. And she goes, God, like they're looking for a salesperson here. I think you'd you'd be fantastic.
00:59:48
Speaker
And I kind of laughed it off at the time. And then kind of, as I was going through college, I said, my might I might look at that. So, and Yeah, that was 10 years ago. So I've been with Skoda the whole time, been with Spirit Motor Group in Sandiford here for for eight years now. But started really from from junior sales 10 years ago then worked my way up, you know, sales, senior sales, et cetera. And then and for the last couple of years, so i was doing used car sales manager for and about two years. And now for the last two years, I've been a new and used car sales manager here. and
01:00:26
Speaker
Spirit Skoda in Sandiford so and yeah it's it's been a busy time being with Skoda the whole time and obviously seeing the brand grow so much over the last 10 years into into what it is today which is you know a top three brand in Ireland and huge market share you know Would you put the Kodiak at the top of the list there in cars that have kind of transformed the brand for you?
01:00:48
Speaker
Yeah definitely I think when I started the new Superb the Mark 3 Superb had just been launched and uh You know, Skoda, they always had a name for being reliable and, you know, dependable. But did I think that Mark III Superb that came out in 2015, that was like a real turning point in terms of design. and ah that when When that came along, I think people were genuinely like, wow, that that actually looks very premium. So I was there at the time when that was launched. And I remember Skoda running a ah campaign when they had a BMW 5 Series and and they had written down the side,
01:01:25
Speaker
is this car as good as a Skoda Superb? And that was probably Ray Ledy's doing. But yeah, that was a big turn of points. yeah i I remember that campaign. I was doing the PR for Skoda at the time. And ah yeah, we it was it was one of Ray's, Paddy, I've got an idea.
01:01:44
Speaker
one So yeah. yeah And they they yeah he had that glint in his eye, which usually means something mischievous is coming. yeah But in fairness, it was good. And yeah, then obviously we had the Kodiak in 17, which we all know has been a a huge success for the brand since. So and like obviously still the Octavia is is still the number one.
01:02:06
Speaker
and i think just from a kind of a value point of view and what you get in space and all that sort of stuff, it's ah it's still a great proposition for people. But the Kodiak has obviously been a ah massive success for the company, you know.
01:02:19
Speaker
So Lee, talk to us about the the car sales process. You know, for lots of people, it's a bit of a mystery and there's often ah sometimes a tense relationship between customer and sales staff.
01:02:32
Speaker
Tell us some of the things that, you know, you see coming through the door when when people are are coming in. Are they anxious? Are they nervous? is there Are they on their guard or or is or is it generally changed from what we used to see?
01:02:42
Speaker
Yeah, I think there is still that element to it. And obviously from, from a salesperson point of view, you you have to understand and and you can't forget that like when the person's coming through the door, um, it's a massive purchase for someone, you know, someone coming in these days and had to spend, you know, can be upwards of 60 grand on a Kodiak. It's a huge purchase and naturally you're going to be anxious or nervous about that. And, uh,
01:03:09
Speaker
I think I've heard it a number of times over the years and and customers saying it back to myself and and i suppose people buy from people and is is what I hear a lot. So I think you have to you have to kind of build a relationship, build trust with the customer.
01:03:25
Speaker
and You know, someone who's trying to be pushy or you know doesn't seem to have any interest, that's ah they're the people that I suppose can can give us a bad name, but I think generally now most people in the industry are, it's definitely changed from, you know, the reputation it might have had 30 years ago or something, you know.
01:03:46
Speaker
and And it's probably fair to say that the customer is a lot more educated now than they used to be because they can do so much research in advance. Certainly, yeah. So when a customer comes through the door now, and you know, they they know what they want. Most most people do. Obviously, there is still a lot of customers there that that do need some guidance and some information and stuff like that.
01:04:08
Speaker
And that's what we're here for. But the customer coming through, especially looking at an EV or hybrid or whatever it might be, and They've done hours and hours of research. They've probably watched Mark's videos there.
01:04:22
Speaker
they've had They've been on YouTube, been on TikTok, you know, done all the websites, the product guides. they They have an idea of what they're coming in to buy or see. and And then obviously the the test drive is still a huge element of the sales process. And so kind of getting people in the cars and and experiencing them is is very important you know and interesting you touch on the test drive thing because especially after covid where people were getting cars delivered and possibly had never even driven them uh it is interesting to hear you say people do still need to to drive a car just to make sure it's comfortable they can you know the seat fits them whatever it is so that that is still a thing yeah
01:05:01
Speaker
Oh, definitely. Yeah. And I think it it obviously during COVID that was, there was times when you couldn't or it was difficult, but it definitely over the last year or so, I think it's definitely become more, more popular again.
01:05:12
Speaker
You know, you did get it a couple the years there where people were like, I know I'm happy to, happy to just buy it or whatever. and But now now definitely I think people, especially as people are transitioning from maybe a petrol or an old petrol diesel car into a plug-in highway or into an electric car, it's not like going from your you know your're your three-year-old petrol Octavia into a new one.
01:05:35
Speaker
and Some people are making big transitions and obviously naturally enough they want to be comfortable with the drive, you know. yeah We've seen quite a change, obviously, in the way people have purchased cars over the years. PCP has become a huge element now when it comes to acquiring that new car.
01:05:52
Speaker
What percentage
Car Sales Process and Financials
01:05:53
Speaker
would you reckon of your customers now avail of things like PCP?
01:05:58
Speaker
Yeah, so with Skoda, obviously having Volkswagen Bank there is ah is a huge benefit to to us. and The rates that we can offer customers, they're 0% higher purchase, all this sort of stuff.
01:06:11
Speaker
and And it's been ah it's been ah obviously an element to the brand's success here. and I'd say kind of rough percentages, and I'd say probably over 50%, certainly over 50%, maybe over 60% of what we would do new as PCP.
01:06:28
Speaker
and And, you know, works out so well for a lot of customers. and And, you know, you do see, obviously, then return customers who are on their third, fourth, fifth PCP at this stage.
01:06:41
Speaker
and But it is it's it's massive. It is massive for for us here and across the range. and I presume most people know how it works, but its initial generally deposits of a minimum of 10%.
01:06:55
Speaker
Yeah, so in most instances it would be minimum 10% and then most mostly up to 30% deposit. and And then most PCPs are over three years and then at the end of the three years you're you're kind of a couple of different options open to you. So and it ah it gives you a lot of flexibility I suppose. And is it true that trying to maybe not go in at the 30% is possibly the best way to do it because you then need a huge amount of equity next time around?
01:07:25
Speaker
Yeah, so again, depending on the type of car, but as ah as a rule, if you do put in the maximum deposit, and when you go to, say, change the car in three years time, if you if you plan on kind of keeping it going and changing it every three years, if you put in that big deposit at the beginning and to keep your payments at that sort of level, you probably will have to add an additional deposit in three years.
01:07:48
Speaker
Whereas if you go with maybe around 15, 20% deposit, you could probably switch into a similar car in three years, depending on condition, mileage, et cetera, for a similar monthly, you know, but without having to give that that big deposit. so Quick quiz question to both of you. What was the first car that came with a PCP?
01:08:09
Speaker
have Volkswagen Golf, maybe. It was the Volkswagen Polo. I remember i remember as ah as a journalist covering the story about this new concept being explained to us about PCP. So yeah, it was the Volkswagen Polo. Volkswagen were the first people to do it in Ireland.
01:08:25
Speaker
What year was that? Oh God, going say 2014? two thousand fourteen no earlier than that. i would say
01:08:35
Speaker
eight or nine perhaps but I could be wrong on that one. In relation to that, you know, especially with with values changing in cars, what's happening with with, you know, say with some new vehicles coming in and particular particular EVs, if there's, you know, if prices are a little bit uncertain at some stages and there's and there's no equity in the car, what happens at that stage? Because I know lots of people are a little bit concerned.
01:09:02
Speaker
and and we We talked about EV values over the last couple of ah episodes earlier, you know if If people are coming back, does the PCP give them a little bit of of certainty when they're buying a car, and you know be it EV or otherwise?
01:09:14
Speaker
With your PCP, you have what's called a guaranteed minimum future value at the end of it. So, and like, say, for instance, the Skoda PCP is based over three years and it's based at 20,000 kilometres per annum.
01:09:28
Speaker
so You know, at the end of your three years, if you're you find yourself in a situation where and the trade-in value may be less than the guaranteed minimum future value, and you do have the security there that you have the hand-back option to to the bank. Now, obviously, that's it's you know ideally, you want to have equity in your car.
01:09:52
Speaker
and And for most people, that will be the case. But obviously, with EV valuations and stuff, there are certain certain situations there where people are in negative equity on them. and So you do have that option with with with the PCP, whereas if you do buy it with cash or buy it on a higher purchase, you you don't have that security at the end of the tournament. So Lee, just back to the the sales job, and you said you studied the economics. What kind of skills? Obviously, you have to be an outgoing person because no one is going to buy a car off a grumpy salesperson.
01:10:26
Speaker
and I know a lot of dealerships might have business manager, but do you need to be a bit of a mathematician for figures, a bit of a whiz and a calculator to make those magic numbers appear? Or, you know, what other attributes you need?
01:10:38
Speaker
I don't think so, no. So I suppose the the main element of it really is, is as you say, being outgoing or just like, it's it's very important. You have to have a good relationship with the customer. So, and you know,
01:10:55
Speaker
it's about building trust. It's about building, about building the relationship. So I think, uh, just having, having the skills to to communicate properly with people, um, and just, just, I suppose people can, people can see true lies. People can see true and, uh, the message. So, you know, if you, if if you can get caught out doing that very quickly. So I think once you're upfront and honest with people and, uh,
01:11:21
Speaker
You keep in touch, like, you know, there's nothing worse than saying, oh, I've tried to ring him a hundred times. I can't get through. Obviously, we're very busy. i And like, it as I said, maybe this time at night when I'm getting a chance to ring you back, but I will ring you back. and So I think just having the skills to to communicate, i think just being a friendly face, uh, being trustworthy. They're, they're the main things. I think in terms of finance, obviously it helps.
01:11:48
Speaker
Um, big part of the job these days is finance is a PCP, ah you know, in some cases leasing, all that sort of stuff. Um, I said most garages will have a business manager there to discuss the finance options with customers, but it etc certainly helps understanding the ins and outs of it. One element which is always ah but not always, but possibly sometimes a bone of contention is the, is the trade-in. So it can be a murky area. and Talk to us about that.
01:12:18
Speaker
Lots of people come in and, you know, vastly overvalue their car or what they think their car is worth. How do you navigate that and try and give us an insight as well onto what happens to a trade-in once it's come through to your hands, what happens from there?
01:12:35
Speaker
Sure. So, um, I suppose, yeah, look, most people are, are, uh, do have a kind of realistic idea of what their car is worth, but like that you do have and some people who might who might be vastly overvaluing it. So I suppose it's a bit like, you know, you could go on to done deal and and you could go high highest to lowest price and they see a car at 25 grand and go, oh, mine has to be worth 25 grand, mine is the same mileage, same condition, et cetera. So and But there could be a car there for five grand less with the same mileage. So and I suppose when you take when we take the car in as a trade-in, let's say we take ah a four-year-old Kodiak as a trade-in, and you might see the car on our website at $36,950.
01:13:22
Speaker
And, you know, we might offer $33 or $32. And the customer goes, well, you have the car outside for four grand more. And, Look, we have like we talked them through, I suppose, when we take the car in as a trade-in, for us to sell it as ah as a Skoda-approved used car, and there's a certain checklist that we have to go through. so you know if the car needs tires needs brakes needs wipers full service timing belt you know anything like that there's a huge a huge level of prepare prep work done on the car in the service department to make sure that the the customer who's buying the car from us is getting a a quality car and you know the price of body work now is very expensive so
01:14:06
Speaker
you know, it might be ah just just a small scrape on the alloy or a small scrape on the bumper. and But, you know, they they they are quite costly now to to fix, you know, the the the price of getting bodywork is expensive. So and I suppose then as well, you've got, we we would give a two-year warranty and roadside assistance on our used car. So obviously there's a cost to to that too.
01:14:30
Speaker
You have to cost to valet the car, you know, all this sort of stuff. And then, you know, Obviously, what do you see the car advertised for is not necessarily what it's going to sell for. and And then obviously we've overheads, you have to pay a salesperson, have to pay VAT, you know.
01:14:45
Speaker
So you look, there's there's a but you'rere know you're not, sometimes if you go, oh, we're giving you 32, car's 37 and people go, oh, you're making five grand profit. It's not like that. But you you are a business as well, though. You do have to make some money.
01:15:00
Speaker
I don't know. Look, and I suppose sometimes, you know, we do get it wrong sometimes. Like, we're not, we're human at the end of the day and sometimes you can make mistakes. and and Or, you know, someone, you know, if someone is trading in a certain car with us, we might see a certain value on it. But, you know, a dealer somewhere else may may think it's worth more because they have a customer for it or they they're in a,
01:15:23
Speaker
certain area where it might work better. So I suppose, look, you do like you do have to shop around as well, you know, go to two or three different garages and make sure you're getting the best of you. When you hear of dealers or, well, I don't know any dealer specifically is saying it, but you hear stories of ah such and such is not taking an EV as a trade-in. Is that something that you you think is fair enough because they're whatever they want to do in their own business? Or does that kind of hinder the reputation or just the growth of of EVs in general? And and also, how how much anecdotally do you think that actually happens?
Spirit Motor Group's Approach to EVs
01:15:59
Speaker
Yeah, like I suppose from ah from our point of view, speaking from a Spirit Motor Group point of view, I suppose and like we we're a huge outlet here for EVs. like you know We've got Skoda with the Enyaq, the Elrock now, we've got Ford, we've got Cooper, Volvo, Polestar, Land Rover, etc. So and like all of our brands have EVs and we we'd never refuse to take it an EV as a trader and never have EVs.
01:16:25
Speaker
So, you know, obviously we have to put a value on it and the customer mightn't be happy with the value, but look, we will put a value on the car. and i don't know, like I suppose I can't speak for other dealers and and they're theyre if they if they do or don't want to take them in, but I know a lot of main dealers like like ourselves, and I'd be surprised if they would reject taking an EV as a trade-in, know.
01:16:51
Speaker
Okay. We're at a stage as well with the EV customers now. We've gotten past the early adopters. We're now into more mainstream customers. What have you learned over the last, say, you know three to five years, first first run of Enyaq, for example, um about the customers and and and how they've fared with EVs so far?
01:17:12
Speaker
Yeah, like obviously Enyaq, we got our first Enyaq in mid-2021. Yeah. and So the customers is buying them then and really, like they really knew what they the car was about, knew all the tech specs.
01:17:27
Speaker
So, you know, they knew what they were buying without even having to kind of come in to us, drive it, et cetera. And now more and more now you see people who who are doing this for the first time and are kind of considering either same again or EV and I suppose.
01:17:43
Speaker
and we have to take them through the options of of both. So say a customer who might be in a Scoda Karak, for instance, is coming back on a PCP and now we have the Elrock there or another Karak. Kind of compare both. but and It's definitely ah in the last in the last six months, I've definitely seen and another spike in interest for EVs. Obviously last year we we know that there was and of a crash in new car sales and in used car values, but it's It's definitely, I've definitely seen it turn a corner. The used car values have stabilized and I think there's a lot more confidence out there in the in the industry, which in terms of used car values on them.
01:18:25
Speaker
And I think the new cars now are are good value like in in in the EVs. So say our our new Elrock, like that's the equivalent to the Skoda Karak and it is cheaper and and you get more spec and you know, it's it's ah it's a really modern looking car. so and I definitely think this year is going to be a big year for EVs, for for all brands, but like it's it's it's definitely been it's definitely been a a turning point. I think this year we we
Car Sales Trends and Buyer Advice
01:18:52
Speaker
will see an uptake and a big increase in uptake. The results of the running cost aspect as well.
01:18:57
Speaker
and Lee, we're heading into March, well, towards the end of March, which is bonkers, but I've always passed on this piece of wisdom, whether it's wisdom or not, you you can confirm or deny in a minute.
01:19:09
Speaker
The last week in March, every dealership is basing their first quarter of the year on that. And is, are the last few days of March a real time to grab a bargain just to get a target over the line?
01:19:25
Speaker
Yeah, i suppose, obviously, um, the first quarter is, is the biggest one for, for the motor industry. Obviously, January is the biggest month and the first quarter is, is, is huge. So, um,
01:19:36
Speaker
Look, there's this, I suppose my advice has always been to get to get in early. So, you know, if you're looking for a car, Skoda over the last couple of years have come to market very early with their offers, yeah like coming out early September for for two 5.1 offers. And it's you get good deals in terms of finance rates and ah getting your order in early and all that sort of stuff at that stage. But there is, there's definitely,
01:20:04
Speaker
if if there's certain dealers or certain brands that are pushing to get a get market share and get targets, and i suppose the the last week in March is is when you're when you'll probably find people are willing to to do and what you might say silly deals or or or certain deals just to just to get the numbers but it's ah it's definitely definitely a good time to to go and andna shop around. you And Lee in terms of spec and when you're choosing a new car would you have advice for people as to you know an optimum spec to buy if they want to retain the value of their car over there of the lifetime of their car?
01:20:41
Speaker
Yeah, so I suppose with with new cars now, and like there isn't really a basic car anymore, well essentially in our range anyway. So, you know, when I when i started and scoed and in in 2015, you know, that you'd have to buy the very top spec Fabia to get air conditioning and park sensors.
01:21:01
Speaker
now the Now the basic car has keyless entry, it has, you know, reverse cameras, wireless car play, all this sort of stuff. so and we don't We don't really offer a basic car anymore, but and i suppose in terms of a in terms of EVs, and definitely the the kind of larger battery ones are are are the ones people tend to want most secondhand and the ones that are probably retaining their value a bit stronger. and So if you're looking at a new EV, I'd certainly say,
01:21:34
Speaker
you know, go for the biggest battery in the car you want that's possible in within your budget, obviously. and So that that's certainly ah it's something, some advice I'd give if you're looking at an EV to get the biggest range you can in the car you want within your budget. What about leather seats and things like that? Do they actually help sell a car down the line? do you Do you think they're worth it as a ah fairly hefty option and extra?
01:21:59
Speaker
Yeah, I don't think so. Like, I think... I think a lot of people now, uh, it's not as big a thing. It was obviously seen years ago as kind of a real luxury item to have.
01:22:09
Speaker
Um, like we find now what's very popular with us is kind of suede or an Alcantara, that sort of finish. and so with us, like the sport line range, I'm sure you're familiar with, uh,
01:22:22
Speaker
And like the Kodiak, Superb stuff like that, the kind of suede interiors or Alcantara interiors that they come with now with the kind of sports seats, they would be the most sought after. So I'd say in in the Skoda range, if you were looking at something like a Kodiak or a Enyaq or Superb when the and and your budget can stretch to a Sportline that's definitely the one I'd say if you want to kind of get the best resale value the people are are are always looking for a Sportline Kodiak especially m but without getting into personal details Lee is it a well paid job you know for anyone listening today going jeez I think I could do a bit of car sales yeah like any sales job the more effort or the more work you put in the more you'll get out of it and
01:23:10
Speaker
So, you know, it's it's obviously in your own interest to to put the work in, to and to do the follow-ups, to do this, that and the other, to to get the results. So, look, it can be, and but it it really depends on on how much effort you're you're willing to put in. if you're if you If you don't want to do the work, you're you're not going to get a good earning out of But if you're willing to if you willing to put in the hours, put in the work, and and you have kind of a as said, kind of a a passion to to to deal with people and and be friendly, you you can certainly make ah a good living from a check.
01:23:47
Speaker
Right, well, Lee,
Conclusion and Listener Engagement
01:23:48
Speaker
it was really insightful to ah just get a hear from the salesperson's side because so often um we don't hear it from your side. And as Paddy rightfully asked those kind of questions of how come how come you my car is back on the forecourt next week for you know more than you paid.
01:24:06
Speaker
um So thank you for joining us on Drivers of Public. You better turn the lights off there because someone will be driving by thinking... and Yeah, I better go and Yeah, well, look, thanks for having me on. Really appreciate it And if you're looking for a new Skoda, Lee is in Spirit Skoda in Sandiford.
01:24:27
Speaker
And he's, by the sounds of things, always there. So go ask for him. Always here. Thanks very much, Lee. Thanks a lot, guys. Cheers. Bye. That's it for this week's Drivers Republic podcast. Join us again next week where we'll have more news, reviews and interviews.
01:24:42
Speaker
If you do want to get in touch with us, do send us an email on driversrepublicpodcast at gmail.com. And for now, from me, Paddy and from Mark, goodbye.